The Zero Lag MACD Indicator is a super-fast MT4 trend oscillator that delivers short-term trend-reversal signals for forex day traders.
This indicator represents an advanced version of the original MACD. It moves fast but remains steady in generating trend signals during highly volatile markets. According to our observation, it lags less and offers a good balance between the signal frequency and accuracy.
Besides zero-lag trend signals, this indicator also provides a simple demonstration of the overall momentum status for predicting future price movements.
Moreover, the Zero Lag MACD works on all timeframes of MT4 and works fine on both forex and stocks charts.
The Zero Lag MACD Indicator prefers the Exponential Moving Average method for transforming the price data into trend signals. It comprises 12-EMA (fast), 26-EMA (slow), and a 9-period signal EMA.
The blue histogram bars of the indicator shows the momentum conditions. The signal EMA in red represents an average of the slow and fast EMAs to signal the trend changes.
During a solid on-trend market, both histogram bars and the signal EMA moves in the same direction. For instance, the bars rise above the zero-line, and the signal EMA moves across the bars carrying a positive value indicates a strong uptrend market.
Besides providing direction trend signals, it also helps to anticipate divergence signals by using its histogram bars.
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Zero Lag MACD Indicator for MT4: Buy Conditions
- The Zero Lag MACD bars move above the zero-line
- The signal EMA value turns positive
- Exit long when both histo-bars and signal EMA show a negative value
Zero Lag MACD Indicator for MT4: Sell Conditions
- The Zero Lag MACD bars move below the zero-line
- The signal EMA value becomes negative
- Exit short when the histo-bars and the signal EMA values turn positive simultaneously